Though Russian President Vladimir Putin has sometimes ruled as an autocrat clamping down on the media, skewing elections and re-nationalising property he has also been a staunch advocate of reform policies that have contributed to Russias economic growth of 38 percent over the last five years.
Under Putin, the government has kept a lid on expenses, using gains from high oil prices to pay off its debt. But the country is not solely dependent on oil Russias growth is being driven by a surge in productivity, which has increased by 14 percent each year.
Consequently, Putins reforms laid the foundation for Russias economic boom, say observers:
In addition, Putin overhauled commercial legislation and reformed the court system, creating a clearer legal environment for businesses. Businesses are also less exposed to mob violence: the number of contract killings declined from 700 a few years ago to 70 in 2002.
In his second term, Putin wants to continue his economic reform agenda: cutting the number of government employees by 20 percent, partially privatising the electricity and railroad industries, and moving Russias army towards an all-volunteer force.
Source: Patricia Kranz and Jason Bush, Putins Game, Business Week, June 7, 2004.
For text http://www.businessweek.com/magazine/content/04_22/b3885096_mz054.htm
For more on Russia http://www.ncpa.org/iss/int/
FMF Policy Bulletin/ 14 June 2004
